Monthly Talk points: How to indicate digital transformations are happening? Impact of Digital Transformation on traditional project mgmt. Aligning project mgmt. principles with Digital Transformation initiatives to drive change Planning for Digital transformation projects Recommendations for DT adoptions and adaptations

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Digital Projects

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This presentation was prepared
for PMI Lebanon Chapter;
Thursday, December 28, 2017

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Brian Solis:
Digital transformation – the re-alignment of, or new investment in,
technology and business models to more effectively compete in a
digital economy – becomes standard. Companies will invest in
digital customer experiences to improve experiences for all
customers and employees.
There is no one type of customer or employee. Thus, digital
transformation efforts will not be informed by digital trends; instead,
social science will help decision-makers better understand how
digital trends affect how people work, shop, communicate, what they
value etc. Technology will then be an enabler to human-centered
transformation in the enterprise to create more adaptive models,
processes and systems to evolve.

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The Fourth Industrial
Revolution, Klaus Schwab
We are at the beginning of a global transformation that is
characterized by the convergence of digital, physical and
biological technologies in ways that are changing both
the world around us and our very idea of what it means to be
human. The changes are historic in terms of their size, speed,
and scope.
This transformation—the Fourth Industrial Revolution—is not
defined by any particular set of emerging technologies
themselves, but rather by the transition to new systems that
are being built on the infrastructure of the digital revolution. As
these individual technologies become ubiquitous, they will
fundamentally alter the way we produce, consume,
communicate, move, generate energy and interact with one
another.

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Impact of digital transformation on
traditional project management
Whatever can be digitized will be. And whatever can’t be
digitized will have an increasingly complex web of
interconnected digital layers. Whether leveraged to fuel
growth, cut costs or spur innovation, these core truths lie at
the heart of the dramatic changes that are transforming
businesses throughout the world.
In itself, digitization is nothing new. From books, maps and
music to flight check-ins, online payments and virtual
personas, digitized products and services have been on the
rise as a de facto way of organizing production and
distribution for decades. So what makes this particular
technological transformation different? And why is it critical for
businesses to understand its true impacts?

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Breakdown of market barriers
Entire networked organizations are only a logical
extension of these trends. When physical location no
longer matters as much as having the right talent
connected by the right digital working tools, it becomes
possible for specific projects, rather than long-term
investments, to steer the course and scale of complete
enterprises. This is particularly true for software
development, where a broad collection of developers
can work independently for a number of companies,
shifting commitments according to personal interest and
potential gains for the project they happen to be
engaged in.

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Efficient implementation
through technology
Timely tracking and aggregated reporting are essential
control instruments for management and a prerequisite
for measuring project progress. To reduce the number of
non-critical projects entering the pipeline, leading players
require that each incoming change initiative (e.g., for
application development) articulate the expected return
on investment as part of the approval application. With
such late and unforeseen business requirements
frequently bogging down projects and resulting in costly
project overruns, the overall business value of platform
migrations can easily come into question.

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Project management principles

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We can’t solve problems in
new ways using old thinking…
We’ve seen a trend over the years of companies moving towards
more of agile, iterative or hybrid approach. The appetite for long,
drawn out waterfall types of projects seems to be diminishing. One
of the keys to the projects’ success was a move away from a
waterfall approach to a hybrid iterative approach. This enables them
to get user feedback earlier and throughout the project rather than
waiting until the end.
What’s interesting is that in the past there was always this push for
using technology, but there was a resistance to change. That really
led to a focus in the operations and technology community on
project management and teaching the industry about the importance
of having disciplined methodology around project delivery. Now we
see it’s the business asking ‘how do we leverage these newer
technologies, how do we catch up to the backlog of technology
needs in our project?’

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Initiatives to drive change
Because technology disrupts the business landscape in
unexpected ways and does this more quickly than it
used to, the primary feature of successful economies will
be their capacity to be agile, adapt to changes, and
respond to shocks relatively smoothly and speedily.
These aspects are meant to be captured by the
education and skills, labor market and goods market,
pillars that measure the extent to which a country’s
regulations and human capital support structural change
and industrial revamp.

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Transforming the possession /
transaction model
As markets move from huge stockpiled inventories of
physical products to massive cloud servers filled with on-
demand software products and services, they will
demand more collaboration and disruptive business
models from all stakeholders. No longer in the business
of top-down planning and industry-centric organization,
they will be forced to turn outward toward more open
networks characterized by crowdsourcing, crowdfunding
and open innovation. All focused on discovering and
delivering the right interactions and access models to
meet consumer demands, or consumers of the
customers’ demands.

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The biology for corporate
survival
As Companies operate in an increasingly complex world:
Business environments are more diverse, dynamic, and
interconnected than ever—and far less predictable. Yet
many firms still pursue classic approaches to strategy
that were designed for more-stable times, emphasizing
analysis and planning, focused on maximizing short-term
performance rather than long-term robustness. Any
organization can become agile, but agility is not a
purpose in itself; it’s the means to a broader purpose. To
give up traditional hierarchy, formal meetings,
overengineering, detailed planning, and excessive “input
steering” in exchange for empowered teams, informal
networks, and “output steering.”

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The Hoover dam
What can we
learn from the
Hoover Dam
project that
influenced
modern project
management?

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The Hoover Dam lessons
The Hoover Dam was completed two years ahead of schedule and
under budget despite political, economical, technical, and
organizational obstacles. Previous literature regarding the Hoover
Dam project focused primarily on the aspects of design,
engineering, and construction, with minimal analysis or discussions
on project and program management techniques unique to this
undertaking.
A historical review of the Hoover Dam project reveals that the project
team implemented a number of innovative strategies and practices
that are comparable to critical success factors for today's
megaprojects to overcome monumental project challenges and
obstacles.

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The three gorges dam, one of the largest
projects of our time and the most
criticized.

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The three gorges dam
Ever more unreliable rainfalls put a big question mark behind the
benefits and the economics of the Three Gorges Dam.
Financial cost: The official cost of the Yangtze dam is US$27 billion.
Critics argue that if all hidden costs are included, the project's real
price tag amounts to $88 billion. It would have been cheaper to
generate electricity and replace coal through other means. While the
dam was under construction, the energy efficiency of China's
economy decreased. According to the Energy Foundation in the US,
it would have been "cheaper, cleaner and more productive for China
to have invested in energy efficiency" rather than new power plants.

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Lebanon PSTN 1993 – 1999
One of the biggest projects in Lebanon, 385 million $. Delivered by
Siemens, Ericson and Alcatel. Mobilized 1500 direct and 5000
indirect employees. Nearly half the amount of the project amount
disbursed in Lebanon in Civil Works and Local Salaries. Copper
OSP networks, Fiber Optics networks, New Buildings, Rehabilitation
of old ones, Tower Foundations, Tower erection, Earth Station,
Control Centers, Switches, Generator Sets, Micro-wave links,
leading to the nation-wide fixed line network.
Client changed 3 times, zero infrastructure, Planning & Design,
Supervision, FIDIC engineer, changes in scope with each political
election.
Systems, staffing, training, organization, S Curves, Critical Paths.
Consortia, several countries, expatriates, custom duties, Solutions,
contract management.

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Software Projects
The Project Manager’s Role in Software Development.
Having led lots of development teams and projects, I have
occasionally been asked by clients “Why do we need a project
manager? The developers know what we want to do; can’t they just
do the work? We can maintain the schedule.” Due to my position, it’s
hard not to get a little defensive and wonder, “why do they ask?” Do
they just really want to update their own project plans?

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EPM / EPMO
• A project management office (PMO) is a group or department
within a business, agency or enterprise that defines and maintains
standards for project management within the organization.
• The primary goal of a PMO is to achieve benefits from
standardizing and following project management processes,
policies and methods. For the office to be most effective, it should
embody the organization's culture and strategy. The popularity of
the office has increased, as more companies with PMOs have
received returns on investment.

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Change Management Projects
What is change management in project
management? First off, change within the context
of project management is anything that transforms
or impacts projects, tasks, processes, structures,
or even job functions. Therefore change
management refers to the tools and processes
you use to manage change within a project and its
project team.
More often than not, change management refers
to overseeing your team to successfully
incorporate change into their work to achieve the
overall project objectives.

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Transformation Projects
The three types of change occurring in organizations today
are: (1) developmental,(2) transitional, and (3)
transformational. Traditional project management and what is
commonly called, “change management” effectively support
developmental and transitional change, but they are woefully
insufficient for transformational change. You will need to
understand the type of change you are in to know whether
typical project or change management approaches can work
for you.

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Constants: Scope of Work
What is statement of work in project management?
Statement of Work (or SOW) is a formal document that
defines the entire scope of the work involved for a
vendor and clarifies deliverables, costs, and timeline. It is
needed in situations where a project involves vendors
and external contributors in addition to the internal
project team. You usually create a SOW as part of a bid
document or part of a contract.
It is vital that the SOW is clear to all stakeholders in
order to clarify the metrics for success and to avoid
disputes involving deliverables, budgets, or timelines.

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Constants: S-Curve
The typical cumulative cost vs. time curve for a building
takes the shape of a letter S. At the beginning of the
project, when mobilization and organization take place,
costs accumulate slowly. Later, when most of the crews
are on the project, costs accumulate at an almost
constant rate. Toward the end of the project the crews
complete their work and the cost accumulation
decelerates.
Goodbye.

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Constants: Critical Path
Critical path project management (CPM) is a technique
used to complete projects on time by focusing on key
tasks. One path through all the inter-connected tasks is
the fastest avenue to take when completing any project.
By focusing on the tasks that make up the critical path,
the project manager maximizes the chances of
completing the project on time.

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Constants: Plan B, really?
Plan B is not a constant anymore, at least not in the way
we studied it. Now we run plans A & B together and call
it: Agile Method.
Bad news, Agile method is replacing the way we studied
Project Management.
Agile method is the result of digital transformation.
Digital transformation means all our environment is
software, including projects. A digital project
management is better managed by the Agile method
rather than by the conventional Project Management.

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Constants: Delivering Early
One of the constant profitability secrets is to deliver the
project as early as possible. The earlier the delivery, the
more the benefits. The best way to deliver early is do the
tasks right from the first time. Mistakes delay the project.
To make the tasks right, we need to design right. The
more we invest in design the earlier we deliver the
project and the more the benefits. Now we have
continuous redesigning with with reiterations.
This opens the door for Design Thinking, one of the
necessary factors for successful product management.

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Digital Transformation
That is because digital transformation is not about
the technology itself but about improving the
business so that it prospers in the digital age. The
technology is used as support for making the
transformation happen, but the deeper
transformation is to be created and maintained by
people. When the people experience / leadership
aspect is neglected, the organization may get lost
in implementing changes and turning in a circle
but never evolving. It will be as such until the
organization changes its approach or until it can’t
survive anymore, and there happens a type of
business cannibalization.

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Agile, manifesto

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Agile Method
Although Incremental software development methods go as far back
as 1957, agile was first discussed in depth in the 1970s by William
Royce who published a paper on the development of large software
systems.
Later in 2001, the agile manifesto, a "formal proclamation of four key
values and 12 principles to guide an iterative and people-centric
approach to software development," was published by 17 software
developers. These developers gathered together to discuss
lightweight development methods based on their combined
experience.

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Agile Project Management
Agile project management allows Project Managers to hit key
milestones and provide executives with fast, accurate project status
even when the deliverable is a moving target. By having greater
visibility and continuous feedback, agile PMOs can react very
quickly to change and bottlenecks in the development process,
delivering better software, faster.
Software projects change constantly. When customers are expected
to finalize requirements before they can test-drive the prototypes,
overhead and long delays often cripple the project. Agile Project
Management is about embracing change, even late in the
development stage. Its about delivering the features with the
greatest business value first, and having the real-time information to
tightly manage cost, time and scope.

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Product Manager
A Product Manager is responsible for the ongoing satisfaction of unmet needs of
customers so it will contribute to the following:
• More value than the competition
• Build a sustainable competitive advantage
• Financial benefit for a business
This includes but also extends beyond the lifecycle of any one product. Managing the
product throughout the product lifecycle ensuring that it continues to satisfy market
needs includes:
• Gathering and prioritizing product and customer requirements,
• Defining the product vision,
• Working closely with engineering,
• Working with sales, marketing and support to ensure revenue and customer
satisfaction goals are met.
The Product Manager’s job also includes ensuring that the product and marketing
efforts support the company’s overall strategy and goals. A Product Manager tries to
find out the customers’ needs and develop a product to satisfy them.

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ProDect Management
The first challenge in differentiating the role of Project Manager or a
Product Manager is that they sound a lot alike. While it is a trivial
semantic issue it often leads to confusion about the 2 roles. It’s
important to begin with the definition of the words Product and
Project.
• PROJECT: A project is a temporary endeavor undertaken to
create a unique product, service, or result.
• PRODUCT: A product is anything that can be offered to a market
that might satisfy a want or a need. A product has a life cycle. It’s
conceived, developed, introduced and managed in the market,
and retired when the need for a product diminishes. A product
developed within context of a project is needed to create a
product. During the life cycle of a product sometimes multiple
projects can occur.

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Digital ProJuct or ProDect

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Design Thinking
The best definition of design thinking is the connection between
creativity and innovation, impacting the consumer, products,
location, process and performance. Done well, it can be a key
differentiator in the digital delivery of services.
Design Thinking, which has been around now for over a decade, is a
design methodology that helps businesses understand their problem
statements better by rooting it in end user research, and uses that
research to influence a more impactful design solution.
The five dimensions of Design Thinking: Empathize with Users,
Create Definitions; Ideate; Prototype; Test.

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Recommendations for DT
adoptions and adaptations
Being Digital: Engaging the Organization to Accelerate Digital
Transformation
Many of the concepts in the executive’s change management
playbook still apply to Digital Transformation. But, how executives
are engaging their organizations is dramatically different. Digital
tools help leaders connect with employees at unprecedented scale
and in new ways. Blogs provide a forum to share regular, candid
perspectives and collect feedback. Digital videos help create richer,
more personal executive communications. Enterprise social
platforms offer employees the opportunity to share their ideas,
collaborate with colleagues and be recognized for their
contributions.

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Recommendation: Go Agile
Being Digital: Why Should I Care about Agile Project Management?
Agile project management continuously evaluates time and cost as
primary constraints. Rapid feedback, continuous adaptation and QA
best practices are built in to the teams committed schedules,
ensuring top-quality output and proven processes. Agile Project
Managers look at proactive, real-time delivery metrics such as
Velocity, Burndown and Cumulative Flow versus frequently out-of-
date Gantt Charts, spreadsheets and irrelevant or impossible project
milestones. The net result? You have fewer costly end-of-project
surprises, and the working product is delivered in weeks rather than
months.

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Case Study: Deutsche Bank
Deutsche Bank’s robo advisor “ROBIN” is a digital investment
solution, which offers automatized portfolio management services
based on ETFs. As an end-to-end digital product, from the creation
of an individual investment strategy to the administration cockpit,
ROBIN allows full transparency on the portfolio at any time and on
any device. In an iterative and agile approach, the project team and
other stakeholders from all bank departments put all the steps in
relation to each other and created an entirely digital and innovative
customer journey. Deutsche Bank created an end-to- end digital
product (including various digital features) with state-of-the-art user
experience that will become a future cornerstone for the bank’s in-
vestment business.

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Waterfall approach
Waterfall is a process to effectively guide product development and
launch project through distinct phases, followed by management
decision points (called gate reviews) which can either move the
project forward or stop it based on phase outcomes.
• Innovation Board aims to qualify,
select and prioritize strategic product
concept and manage roadmap
• Innovation Board is chaired by
strategy to ensure alignment with all
Line of Business

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New products
Existing
products to
launch in other
countries
Product
evolutions
A2P SMS
SMS FW
SMS GW
Managment
Strategy
Operato
rs
Partner
s
Opportunity
study
Design Develop
Deploy &
Launch
Manage &
Review
Strategy /
Idea=on
M0 M1 M2 M3 M4 M5
Innova&on
Board Product & Marke&ng Board

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Opportuni
ty study
Design Develop
Deploy &
Launch
Review &
Manage
• Validate ini&al
ideas and
product concept
• Select and
posi&on
products in the
commercial
roadmap
Time To Go Time To Market
• Define & design
product
func&onality
• Perform Feasibility
Study & Impact
analysis
• Outline Business
Model
• Confirm roadmap
• Develop product
• Perform
technical
acceptance and
test
• Validate media
plan, campaign
and UI
development
• Deploy
marke&ng tools
• Opera&onal
process ready
• Launch review
and correc&ve
ac&ons
• Improve or stop
products not
achieving
planned results
Time To Value
2-4 weeks 1-3 months 3 weeks 1-2 weeks 1-3 months M0 M1 M2 M3 M4 M5

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Opportuni
ty study
Design Develop
Deploy &
Launch
Review &
Manage
Time To Go Time To Market Time To Value
2-4 weeks 1-3 months 3 weeks 1-2 weeks 1-3 months
Innova&on
Board
Product &
Marke&ng
Board
Product &
Marke&ng
Board
Product &
Marke&ng
Board
Product &
Marke&ng
Board
Product &
Marke&ng
Board
M0 M1 M2 M3 M4 M5
Qualify & select
strategic product
concept to be further
studied
Manage all aspects of product development, validate product readiness, validate commercial
launch and review results of market launch

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Opportuni
ty study
Develop, Deploy & Launch
Review &
Manage
• Generate ini&al ideas
and product concept
• Select and posi&on
products in the
commercial roadmap
• Perform Feasibility
Study & Impact
analysis
• Outline Business
Model
Time To Go Time To Market
• Develop product
• Perform technical acceptance and test
• Validate media plan, campaign and UI
development
• Deploy marke&ng tools
• Opera&onal process ready
• Launch review
and correc&ve
ac&ons
• Improve or stop
products not
achieving
planned results
Time To Value
M1 M4 M5 M0

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